Skip to Page Content | Skip to Site Navigation | Skip to Section Navigation

Frequently Asked Questions

Where Can I Find Affordable Secondary Financing Sources?

  1. How do I get started with Home Possible Mortgages?
  2. How do I access Loan Prospector®?
  3. Where can I find wholesale lenders with Home Possible Mortgages on their rate sheet?
  4. What marketing tools are available to promote Home Possible Mortgages?
  5. Who is eligible for the Home Possible Neighborhood Solution offering?
  6. How does a secondary financing option work?
  7. Where can I find affordable secondary financing sources?
  8. How does a temporary subsidy buy down work?
  9. How do I access Loan Prospector Outreach®?

  1. How do I get started with Home Possible Mortgages?
    The first step to working with Freddie Mac is to visit Doing Single Family Business with Freddie Mac, complete the forms, and sign-up for Loan Prospector®, our online mortgage origination tool. You will then be assigned an Account Manager who will meet with you and provide all the information needed to begin offering Home Possible Mortgages.
  2. How do I access Loan Prospector®?
    Loan Prospector® is Freddie Mac's platform of innovative, easy-to-use mortgage origination tools and services that let you do more loans with less work. Our automated underwriting service uses the latest data and networking technology to enable enhanced data sharing and streamlined processing. Visit Loan Prospector's home page and sign-up today.
  3. Where can I find wholesale lenders with Home Possible Mortgages on their rate sheet?
    Many wholesale lenders are originating Home Possible Mortgages. Please keep in mind that these lenders may promote Freddie Mac's Home Possible Mortgages under a brand name of their own.
  4. What marketing tools are available to promote Home Possible Mortgages?
    Freddie Mac has developed customizable marketing materials for distribution at your office, home fairs, and community events. Contact your Account Manager for information on how to use these materials to your best advantage.
  5. Who is eligible for the Home Possible Neighborhood Solution offering?
    To qualify for the Home Possible Neighborhood Solution Mortgage, the borrower must meet the following requirements:
    • An employee of an accredited or state-recognized private or public school; a certified teacher or administrator in an education agency; or an employee of a post-secondary level educational institution; or
    • An employee of a law enforcement agency or fire department administered by an agency or subdivision of a state or local government; or a sworn law enforcement officer responsible for crime prevention and detection, law enforcement, criminal incarceration; or a sworn member of a fire department involved in fire suppression or prevention; emergency medical response, hazardous materials incident response and management, or response to terrorism; a volunteer firefighter; or
    • A certified, accredited, or licensed health care worker who is a medical resident or fellow; a nurse, nursing assistant, pharmacist, pharmacy technician, physician's assistant, or medical technician, technologist, or therapist.
    • Members of the U.S. Armed Forces including Army, Navy, Air Force, Marines, Coast Guard and National Guard.
  6. How does a secondary financing option work?
    All subordinate financing must be an Affordable Second, per Guide Section 25.1(g).

    Affordable Seconds (Guide Section 25.1(g)) and Rural Housing Service (RHS) Leveraged Seconds meeting the requirements in Guide Section 35.3 are permitted as a source of funds for down payment, closing costs, financing costs, and prepaids/escrows for Home Possible Mortgages. Affordable Seconds with no payments before the 61st payment on the Home Possible Mortgage may be entered in the Total Gift Field of Loan Prospector. In all other respects, the Affordable Second must be considered as secondary financing.

    For refinances, any secondary financing that is resubordinated to the lien of the new refinance mortgage must be an Affordable Second that meets the requirements of Section 25.1(g), or an RHS Leveraged Second that meets the requirements of Section 35.3.

  7. Where can I find affordable secondary financing sources?
    View our list of sources on FreddieMac.com.
  8. How does a temporary subsidy buy down work?
    Temporary subsidy buydown plans are a good fit for borrowers who have the capacity for higher earnings within a few years of obtaining a mortgage. Buydown plans allow borrowers to benefit from temporary subsidies of the monthly payment of principal and interest. Buydown plans may be offered by local governmental agencies, nonprofits or employers. View the Product Sheet on this service for more details.
  9. How do I access Loan Prospector Outreach®?
    Loan Prospector Outreach is a powerful, web-based tool that enables housing counselors to objectively and more efficiently assess whether their clients are ready to apply for a mortgage. It's able to conduct a reliable client assessment, offer information to shape pre-purchase counseling, and ensure the client's smooth transition to a participating lender.

Back to Top